torsdag 26 november 2009

STP after Senlac corporate presentation

Lot's of cool stuff here, but for sure one take away from this is how well positioned STP now is for future growth.

There is first of all growth opportunity at McKay beyond the 12.000 bpd production expected in late 2011 where STP management belives significant upside beyond assigned reserves may exist.

Then given the fact that still after that the 12.000 production has started at McKay this then only represents some 10.5 of STP 269 sections.

In addition to this company is now planning for this winter core hole exploration at two new areas and where both of them each may represent an addition 12.000 bpd capacity opportunit.

Already contingent resource and potential project areas has been identified at Long Lake as well as at Hangingstone.

Very good is that the cash flow and earnings aquired with the purchase of Senlac indeed created a very good foundation for this expansion. Look for example at the pie chart at page 25 and realise this company really now has a sound and solid financial platform to build its future expansion from. 26 month capital forcast for STP will mostley be managed via own cash flow, corporate debt and very little indeed via equity and dilution.

Then of course considering also the fact that the real supply cruch as far as availability of oil in the world for sure will be apparent to all by mid 2011, timing vice McKay production start coulden't have a more significant impact.

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